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POSTGRADUATE LEVEL TASK

In today’s competitive business world people tend to set up their outlets selling similar products next to their competitors so that the firms having reputed brand image and the firms not having a reputed brand image can compete in the same market on the basis of their quality, product and pricing. The following are the advantages and disadvantages of retail outlets selling similar product located together:

Advantages:

Locating retail outlets selling similar products close to each other creates a hub for all the buyers. The products are made available to the buyers easily and is much more convenient for the buyers. This also increases the potential of the market to attract more customers. Such a market provides the customers with an opportunity to weigh all possible alternatives before purchasing a product. The buyers are benefited in such situation because of the competition prevailing in the market the buyers receive the best quality of goods and services buy the retailers who are trying to receive a competitive advantage in the market. The retailers have an advantage of attracting rival customers by improving their performance. The brand image and brand reputation also plays an important role in attracting customers. Retailers can open outlets selling parallel products for example a retailer can open an accessory shop opposite to a showroom selling readymade garments. Retailers can advertise and market their product in a unique way that will help them to differentiate a product from its competitors product. In such a situation the efficiency of the retailers increases and there is maximum utilisation of resources to gain profits. This kind of a market provides equal opportunity to all the retailers competing in the market.

For instance taking the example of a shopping mall such as bull ring there are many outlets such as Sports direct, foot asylum, JD sports all selling footwear which are of the same brands but they all differ in...